Total Billings $1.1 billion (-9% y/y); Total Digital Billings $0.6 billion (+17% y/y excluding K-12); Total Adj. EBITDA $439 million (+1% y/y); Free Cash Flo $254 million (-$16 million y/y).
Higher Ed: Growth across all digital solutions led by Inclusive Access model and supported by ongoing investments in implementation and customer support drove 155bps market share improvement; strong performance counter to enrollment decline as sell-through increases and recapture of grey market continues
K-12: Performance inline with expectations driven by expectedly smaller on-list adoption market opportunity with market stability forecast through FY23; performance in TX ELA 9-12 adoption remains strong with cost structure changes benefiting Cash EBITDA and better positioning the business against market cyclicality
International: Print Billings materially impacted by COVID-19 since January with recovery beginning in late fiscal Q2; digital revenue growth continues with focus on institutional sales and local product development
Professional: Digital subscription-based Access performance remains strong with new global structure driving international pipeline growth; print business will recover as distribution channel partners return to full operation and new titles are introduced in H2
Liquidity: Cash balance of $360M at September 30th , 2020 will continue to grow throughout fiscal Q3 with additional liquidity available via undrawn line of credit of $350M and $150M incremental seasonal securitization line; net first lien leverage below 3.3x
details at: https://s22.q4cdn.com/942918855/files/doc_presentations/2020/10/Fiscal-Q2-FY-2021-Preliminary-Investor-Update.pdf